Light olefins
Overview
The global light olefins market is made up of ethylene and propylene monomers. These product markets can be affected by a great many factors.
Ethylene is the most widely used commodity chemical and is produced globally in all major regions. It is converted into many products used in daily life like plastic packaging, durable goods, hygiene products and other consumer items. The ethylene market is driven primarily by regions of low production cost and regions of high demand growth. Polyethylene, ethylene’s largest derivative, represents about 65pc of global ethylene demand. Anyone involved in the ethylene industry – directly or indirectly – needs market and pricing insight to anticipate supply shortages and potential swings in pricing.
Propylene is the second most widely used commodity chemical and is produced globally in all major regions. Propylene is a volatile commodity because of its predominantly co-product nature and unpredictable supply, but recently the industry has been trending to more on-purpose production. It is converted into many products used in daily life like plastic packaging, durable goods, automotive products, and woven fabrics. Polypropylene, propylene ’s largest derivative, represents about 70pc of global propylene demand. Anyone involved in the propylene industry – directly or indirectly – needs market and pricing insight to anticipate supply shortages and potential swings in pricing.
Our light olefins experts will help you determine what trends to track and how to stay competitive in today’s ever-changing global market.
Latest light olefins news
Browse the latest market moving news on the global light olefins industry.
Brazil PE import share from US falls through Nov
Brazil PE import share from US falls through Nov
Sao Paulo, 10 December (Argus) — Provisional antidumping duties on polyethylene (PE) resin imports set earlier this year have so far had a limited effect on Brazilian imports, as the US remains the country's top supplier despite losing market share, according to Comexstat data. The duties, issued in August by the country's foreign trade council Gecex/Camex, set a $199.04/t duty on US PE imports and a $238.49/t for Canadian imports, both valid for up to six months. Brazil's PE imports totaled $1.49bn year-to-date November, a 1.5pc decrease compared with $1.51bn reported in the same period of 2024. Import volume increased 1.13pc in the same period, from 1.32mn tonnes (t) to 1.34mn t. The US remained the main exporter to Brazil with 896,971t from January–November, with its share of total volume falling to 66pc from 71pc. Argentina became the second-largest exporter with 199,415t, and its volume share increased to 14.8pc from 10.9pc. Canada's share fell from 5.95pc to 3.62pc in volume, totaling 48,641t in the eleven-month period. Saudi Arabia rose to fourth place with 43,026t, representing 3.21pc of the total volume. Egypt dropped to fifth place with 42,318t, accounting for 3.15pc of the total volume. Brazil's PE exports reached $731mn from January-November, a 3.64pc decrease from $705mn in the same stretch of 2024. The total exported volume increased by 5.13pc to 568,537t from 540,773t. Argentina remained the leading importer of Brazilian PE in the period, buying 115,752t, up 19.4pc from the previous year. Chile surged to second place with 69,587t, a decrease of 8.74pc in volume year on year. Belgium dropped to third place for Brazilian PE imports with 68,759t, up 0.79pc compared with January–November 2024. China ranked fourth with 48,831t, a 4.36pc growth in the interval. Peru closed the top five at 46,615t, a 14.9pc increase from the same period last year. By Isabela Mendes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Oman's polymer industry gets $70mn in investments
Oman's polymer industry gets $70mn in investments
Dubai, 9 December (Argus) — Omani state-owned energy company OQ signed 11 agreements worth in excess of $70mn under the Ladayn Polymer Programme (LPP) on the sidelines of the 19th Gulf Petrochemicals and Chemicals Association (GPCA) Forum in Bahrain today. Six are new projects, and five are expansion of existing projects, Ladayn programme head Mundhar Saleh Al Rawahi told Argus . The investments are aimed at strengthening Oman's ability to convert locally-produced polymers into higher-value products. The projects will offtake more than 90,000 t/yr of raw materials from OQ. Around 70pc of the output will be exported, while 30pc will be consumed domestically, according to Al Rawahi. The agreements were signed with a "diverse set of local, regional and international polymer manufacturers", and cover a broad range of product categories responding to national priorities and market demand. Nine factories will be inaugurated, Al Rawahi said, which will offtake a furhter 100,000 t/yr raw materials from OQ. The 11 agreements bring investments into the LPP programme to around $220mn. The LPP project, located in Sohar Industrial City, was first announced in 2023 . The programme is jointly developed by OQ and state-owned Madayn. LPP is located near the OQ polymer complex in Sohar, which supplies it with polymers, primarily polyethylene and polypropylene. The agreements are in line with Oman's Vision 2040, which aims to develop the private sector while moving away from hydrocarbon use. By Ieva Paldaviciute and Rithika Krishna Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
EU readies new bioenergy strategy
EU readies new bioenergy strategy
Brussels, 26 November (Argus) — The European Commission is today expected to adopt a new strategy aimed at boosting "nature-positive" investment and making better use of biomass. The latest version of the strategy seen by Argus deleted wording from a previous leaked draft that mentioned disincentivising "inefficient" biomass combustion, including changes to EU and national subsidies to avoid prioritising combustion over material use. Industry groups last month had criticised the previous draft strategy for "punishing" biomass combustion and ignoring the role of sustainable biofuels. The commission may still amend the current strategy document, which sets out a direction for policies but is not itself a legal proposal. Demand for biofuels will likely rise from 2025, in part thanks to the bloc's ReFuelEU Aviation and FuelEU initiatives, but sustainable biomass remains finite and its use is most effective in hard-to-abate sectors, the commission said in the document. The commission wants to add value to energy, industry, food, health and other sectors through biomass processing and biotechnology. The body said it would, for example, support uptake of bio-based plastics and novel materials by 2027 alongside recycling. Officials could also assess whether EU-wide definitions could support certification and scaling of bio-based polymers. And an EU methodology could certify long-lasting biogenic carbon storage in buildings under the carbon removal and carbon farming certification framework. The commission will issue legislation such as the upcoming BioTech Acts to bolster industrial production of bio-based chemicals and may target bio-based content requirements in some products. In the strategy, the commission and the European Investment Bank will use finance instruments to support biorefineries that incorporate new technologies. And a forthcoming Circular Economy Act aims to support biogas and biomethane production as well as using digestate as a fertiliser. A review next year of the bloc's emissions trading system will also explore potential for scalable biogenic carbon, capture, use and storage projects. The EU is also scheduled to review its Renewable Energy Directive by 2027 and assess how national biomass support schemes affect biodiversity. Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Unipar sees lower 3Q profit on sluggish petchem cycle
Unipar sees lower 3Q profit on sluggish petchem cycle
Sao Paulo, 14 November (Argus) — Brazilian company Unipar Carbocloro, South America's largest producer of polyvinyl chloride (PVC), reported a net profit of R107mn ($20.2mn) in the third quarter of 2025, 9pc below the same period last year. The results were primarily driven by a downturn in the petrochemical cycle and a persistent imbalance between global supply and demand. Unipar's average plant utilization rate remained at 80pc in Brazil and reached 67pc in Argentina, both impacted by temporary reductions in operations due to weak demand at certain times during the quarter. Chief executive Rodrigo Cannaval noted mounting pressure on Brazil's domestic PVC market from imports, particularly from Colombia and Egypt, alongside weak demand in Argentina amid President Javier Milei's macroeconomic reforms. International caustic soda and PVC prices decreased 11pc and 5pc, respectively, compared to the second quarter, curtailing Unipar's adjusted recurring earnings before interest, taxes, depreciation and amortization (EBITDA) of R266mn, which also suffered negative effects from currency appreciation in Brazil, even though the company's cash flow is mostly tied to the US dollar. Annually, adjusted recurring EBITDA increased 14pc, from R233mn, mostly due to higher volumes of caustic soda and chlorinated products, offsetting 15pc lower sales of PVC. PVC accounted for 40pc of the company's revenue in the quarter, followed by caustic soda (39pc) and chlorinated products (21pc). Additionally, Unipar's Capex should be significantly smaller next year, Cannaval said during the company's third-quarter earnings conference call, given that the modernization of the Cubatao plant is nearing completion. It is the company's most relevant ongoing project, he said, and affected both gross and net debt in the quarter. The Cubatao plant has production capacity of 355,000 metric tonnes (t)/yr of chlorine and 400,000 t/yr of caustic soda. Unipar introduced new PVC pricing after Brazil increased antidumping duties on US imports to 43.7pc from 8.2pc. But Cannaval said PVC demand in Brazil continues to lag amid elevated interest rates. The petrochemical firm posted net revenue of R1.2bn, 8pc below the same quarter the previous year. Unipar's net debt hit R1.5bn, 275pc above R459mn reported a year ago. By Isabela Mendes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
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